Gardner Denver trims euro term loan pricing to Euribor plus 375 bps

By Sara Rosenberg

New York, July 23 - Gardner Denver Inc. reduced pricing on its $525 million seven-year euro term loan to Euribor plus 375 basis points from initial talk of Euribor plus 425 bps to 450 bps, according to a market source.

Also, the original issue discount on the euro term loan was revised to 99½ from 99, the source said.

As before, the euro term loan has a 1% floor and 101 soft call protection for one year.

Recommitments for the euro loan were due at 3:00 p.m. UK time on Tuesday.

The company's $2,825,000,000 senior secured credit facility (B1/B) also includes a $400 million five-year revolver and a $1.9 billion seven-year U.S. term loan.

Pricing on the U.S. term loan is Libor plus 325 bps with a 1% Libor floor and an original issue discount of 991/2, and the debt has 101 soft call protection for one year.

Earlier in syndication, the U.S. term loan was upsized from $1.8 billion, pricing was cut from revised talk of Libor plus 350 bps and initial talk of Libor plus 400 bps to 425 bps, the discount was tightened from 99 and the 101 soft call protection was moved back to six months and then back to one year.

UBS Securities LLC, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Mizuho Corporate Bank Ltd., RBC Capital Markets, Macquarie Capital and HSBC Securities (USA) Inc. are the bookrunners on the deal and the joint lead arrangers with KKR Capital Markets and Sumitomo Mitsui Banking.

Proceeds from the credit facility will be used to help fund the buyout of the company by Kohlberg Kravis Roberts & Co. LP.

Other funds for the transaction will come from $575 million of senior notes, downsized from $675 million as a result of the U.S. term loan upsizing.

Under the agreement, KKR will acquire all of the outstanding shares of Gardner Denver common stock for $76 per share in cash. The transaction is valued at about $3.9 billion, including the assumption of debt.

Closing is expected on July 30, the source added.

Gardner Denver is a Wayne, Pa.-based manufacturer of industrial compressors, blowers, pumps, loading arms and fuel systems.

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